The US Federal Reserve has decided to keep its key interest rate unchanged amid ongoing economic uncertainty and inflation concerns.
The US Federal Reserve has opted to keep its key interest rate steady at a range of 3.5% to 3.75%, as announced on March 18.
According to the Fed's press release, economic activity is increasing at a consistent rate, despite low job growth and a relatively stable unemployment rate.
Officials expressed ongoing uncertainty about the economic outlook, particularly referencing the potential long-term impacts of recent events in the Middle East on the US economy.
Reaffirming its commitment to an inflation target of 2%, this decision marks the second consecutive meeting where the Fed has held rates steady, following earlier reductions. Analysts had largely anticipated this move.
In response to the Fed's announcement, Bitcoin experienced minimal fluctuations, trading at approximately $71,600, reflecting a 3.7% increase in the past day. Other major assets also remained largely unchanged.
During a press briefing, Fed Chair Jerome Powell highlighted the steady growth in the economy but acknowledged ongoing inflation challenges. He described the current monetary policy as suitable given the geopolitical tensions in the region.
Powell noted that the uncertain implications of Middle Eastern events could drive energy prices higher, thus influencing overall inflation. He stated that it is premature to speculate on the potential economic impacts.
It is worth noting that the consumer price index for February remained flat at 2.4%.
